SPAA backs ASIC warning on property advice by unlicensed real estate agents.

The SMSF Professionals’ Association of Australian (SPAA) fully supports the ASIC statement issued on Wednesday that strongly warns the real estate industry about agents recommending investors to use an SMSF to invest in property.

SPAA CEO Andrea Slattery says: “The ASIC warning is both timely and needed in light of the enormous media attention that has been given to this issue in recent months.

“From SPAA’s perspective, it’s been our constant stance on SMSFs investing in property that there are technical dangers, and as such we have always recommended that trustees get professional licensed advice, either from a professional SMSF Advisor who holds a licence or is an authorised representative of a licensee.

“We took that position a year ago in a detailed technical bulletin to all our members warning of the risks of property investment, and it remains our position today.”

She says property is an investment option for an SMSF, but, like any investment, it must be suited to the fund and take into consideration the members’ circumstances.

“In relation to property, there may be an interest in this asset class now because, in a low interest environment, people are looking for investment opportunities with higher yields than cash or bonds, and while there are still fears held about equities.

“It’s exactly because of this heightened interest in property that the regulator should be on the front foot to warn the real estate industry that its members must use licensed advice when recommending setting up an SMSF or recommending an SMSF acquires a property.

“ASIC is the ‘consumer awareness’ regulator and gained new powers on 1 July 2013 to target inappropriate marketing and spruiking within the Financial Services sector.

In its statement, ASIC said it was concerned that with the increased popularity of SMSFs and property investment, adding that real estate agents may not realise they are providing financial product advice and need an Australian financial services (AFS) licence when making recommendations or statements of opinion to a person to use an SMSF to invest in property.

ASIC has written to the REIA, the state and territory real estate institutes and property investment associations (real estate bodies), setting out its concerns and asking the real estate bodies to communicate these to its members.

The post SPAA backs ASIC warning on SMSF property investment appeared first on AdviserVoice.

The new arrangement will see Bendigo and Adelaide Bank become the exclusive sponsor of REIA’s two flagship market data and analysis publications, Real Estate Market Facts and the Housing Affordability Report.

REIA CEO, Ms Amanda Lynch has described the new partnership as a perfect match and says it demonstrates a wonderful commitment to the real estate industry by the bank.

“Support like this is critical to enable us to do the number-crunching work our members expect of us. We’re very excited to have such a respected partner on board to ensure the continuation of these important publications,” Ms Lynch said.

Executive, Bendigo Wealth, Mr John Billington is equally enthusiastic about the new relationship and says involvement in the production of Australia’s most authoritative sources of real estate analysis will also result in tangible benefits for banking customers and the bank’s business partners such as mortgage brokers and independent financial planners.

“Nobody understands the real estate industry like the Institute and its members and this partnership will help give us additional insights that we can use for the benefit of customers,” Mr Billington said.

General Manager, Third Party Lending at Adelaide Bank, Damian Percy, said “Given the bank’s involvement in assisting people into housing for more than 100 years, we are particularly pleased to be able to support the quarterly Housing Affordability Report. The Housing Affordability Report is an important publication and a pertinent reminder that housing is more than an asset class. Appropriate and affordable housing underpins stable and successful communities. We forget that at our peril,” Mr Percy concluded.

The June quarter editions of Real Estate Market Facts and the Housing Affordability Report will be the first releases under the new partnership agreement and will be available through the www.reia.com.au website in early September.

The post REIA forges new partnership with Bendigo and Adelaide Bank appeared first on AdviserVoice.